Maryland is leading the national trend toward greater worker mobility. Recent legislative changes have significantly limited the use of non-compete agreements for many local businesses. These laws aim to protect lower-wage earners and professional groups from restrictive work contracts. As of 2026, the state has raised the income floor for these agreements to match rising economic standards. Employers must now audit their existing contracts to ensure they remain legally enforceable in Harford County. Failing to update these documents can leave your company vulnerable to lawsuits or administrative penalties.
The 150 percent rule for 2026
The core of Maryland’s non-compete law relies on a wage threshold. An employer cannot require a non-compete for any worker earning less than 150 percent of the state minimum wage. Since the state minimum wage increased on January 1, 2026, the corresponding non-compete threshold also rose. Any agreement signed with a worker below this pay level is considered null and void. This rule applies regardless of the employee’s industry or job title.
Several factors now determine whether a non-compete is valid:
- The current state minimum wage of $15 per hour
- The calculated threshold of $22.50 per hour for most workers
- The annualized salary equivalent of approximately $46,800
- Higher minimums for workers located in Montgomery County
- The total compensation package, including bonuses and commissions
Business owners should treat these figures as a mandatory baseline for all new hires. If a worker’s pay falls below these levels, a traditional non-compete agreement will not be upheld in a Maryland court.
Special protections for healthcare and veterinary staff
New regulations also target high-earning professionals in the medical and veterinary fields. As of July 2025, licensed healthcare workers earning $350,000 or less are exempt from non-competes. Even for those earning above this high threshold, the law imposes strict limits on the reach of the contract. This change ensures that patients can follow their preferred providers to new locations without legal interference. These rules represent a major shift in how medical practices must manage their professional talent.
The law now places limitations on high-earning medical practitioners:
- A maximum duration of only one year for the restrictive period
- A geographic radius no greater than 10 miles from the primary office
- Clear notification requirements for patients seeking a departing provider
- Full exemptions for veterinary technicians and practitioners, regardless of pay
- Protections for nurses, pharmacists, and physical therapists providing direct care
These industry-specific mandates are “aggressive” measures designed to prioritize public access to care. Every medical and veterinary practice in Maryland should review its professional service agreements immediately.
Alternative ways to protect your business
While non-competes are more limited, other legal tools remain highly effective for protecting your interests. You can still use non-solicitation agreements to prevent former employees from poaching your clients. Confidentiality and non-disclosure agreements also safeguard your trade secrets and proprietary data. Using a “comprehensive” approach allows you to protect your business without violating state labor laws. A well-drafted contract focuses on assets rather than broad employment bans.